Reverse Mortgages in Utah
If you're 62 or older, a reverse mortgage lets you convert your home equity into tax-free cash — with no monthly mortgage payments required. Stay in the home you love while unlocking the wealth you've built.
What Is a Reverse Mortgage in Utah?
A reverse mortgage in Utah allows homeowners aged 62 and older to convert the equity in their home into cash. Unlike a traditional mortgage, you are not required to make monthly mortgage payments to the lender. Instead, the loan balance grows over time and is repaid when the last borrower sells the home, moves out, or passes away.
Reverse mortgages are available on single-family homes, multi-family properties (up to 4 units), FHA-approved condominiums, and certain manufactured homes. The most common type is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration. HECM loans in Utah follow the same federal guidelines as the rest of the country, but working with experienced reverse mortgage lenders in Utah ensures you get guidance tailored to local property values, tax rates, and market conditions.
Non-recourse protection: You or your estate will never owe more than the home's appraised value when the loan becomes due, even if the loan balance exceeds the home's worth.
(Note: you must maintain the home and remain current on property taxes, homeowners insurance, and HOA dues.)
Types of Reverse Mortgages
HECM (Home Equity Conversion Mortgage)
The most common reverse mortgage, insured by the FHA. Choose how you receive funds: as a lump sum, a line of credit, fixed monthly payments, or a combination. The amount you can borrow depends on your age, your home's appraised value, and current interest rates.
HECM for Purchase
Use a reverse mortgage to buy a new home. Combine your down payment with the reverse mortgage proceeds to purchase without monthly mortgage payments. Ideal for downsizing or relocating in retirement. Learn more about reverse purchase →
Jumbo Reverse Mortgage
Designed for high-value homes that exceed HECM lending limits. Jumbo reverse mortgages (also called proprietary reverse mortgages) offer larger loan amounts for homeowners with significant equity in premium properties.
Eligibility Requirements
How a Reverse Mortgage Works
Once approved, you choose how to receive your funds — as a lump sum, a line of credit you can draw from as needed, fixed monthly payments, or a combination of these options.
Apply & Complete Counseling
Meet with a HUD-approved counselor to review the program. Then work with your loan officer to submit your application.
Home Appraisal
An independent appraisal determines your home's value, which — along with your age and current interest rates — establishes how much you can borrow.
Choose Your Payout
Select a lump sum, line of credit, fixed monthly payments, or a combination that fits your financial goals.
Receive Funds
After closing, funds are disbursed according to your chosen payout structure. Any existing mortgage balance is paid off first.
Live in Your Home
Continue living in your home with no monthly mortgage payments. The loan is repaid when the last borrower sells, moves out, or passes away.
Generally, the older the borrower, the more money is available. With a HECM, if a borrower moves into a nursing facility, they can remain away from the home for up to 12 months before the loan becomes due.
Benefits of a Reverse Mortgage
Additional Retirement Resources
Supplement your retirement income with the equity you've built in your home over decades of ownership.
Age in Place
Stay in the home you love without the burden of monthly mortgage payments during your retirement years.
Access Equity Without Selling
Tap into your home's value without having to sell or downsize. Use funds for medical expenses, travel, or daily living.
Generally Not Taxable
Reverse mortgage loan advances are typically not considered taxable income. Consult a tax advisor for your specific situation.
No Impact on SS or Medicare
Reverse mortgage proceeds generally do not affect Social Security or Medicare benefits.
Non-Recourse Protection
You or your heirs will never owe more than the home's appraised value, even if the loan balance grows beyond the home's worth.
Things to Consider
Reduces Home Equity Over Time
As interest accrues on the loan balance, the equity in your home decreases. This can affect the value of your estate.
Higher Borrowing Costs
Reverse mortgages generally carry higher upfront costs than traditional mortgages, including mortgage insurance premiums and origination fees.
Ongoing Obligations
You must continue paying property taxes, homeowners insurance, and HOA fees. Failure to do so can trigger loan default.
Complex Terms
Reverse mortgages involve complicated terms and conditions. Professional guidance from a licensed loan officer is strongly recommended.
Impact on Inheritance
A reverse mortgage can reduce the assets available to your heirs. However, heirs retain the option to repay the loan and keep the home.
Costs & Fees
Like any mortgage, a reverse mortgage involves closing costs and fees. Understanding these upfront helps you make an informed decision.
Charged by the lender to process the loan. Capped by FHA guidelines for HECM loans.
An upfront and annual premium paid to FHA that protects the borrower and lender.
Standard costs including appraisal, title search, recording fees, and other third-party charges.
A monthly fee charged by the loan servicer to manage your account and send statements.
A modest fee for the required HUD-approved counseling session, often around $125.
We recommend comparing offers from multiple lenders to ensure you're getting the best terms available.
Utah Reverse Mortgage FAQ
What is a reverse mortgage in Utah?
A reverse mortgage in Utah allows homeowners aged 62 and older to convert their home equity into tax-free cash without monthly mortgage payments. The most common type is the HECM, insured by the FHA. Utah homeowners can receive funds as a lump sum, line of credit, fixed monthly payments, or a combination.
Who qualifies for a reverse mortgage in Utah?
You must be at least 62 years old, own your home outright or have a low remaining mortgage balance, live in the home as your primary residence, and complete a HUD-approved counseling session. The home must be a single-family residence, a 2–4 unit property where you occupy one unit, an FHA-approved condo, or an eligible manufactured home.
How much can I get from a reverse mortgage?
The amount depends on your age, your home's appraised value, current interest rates, and the type of reverse mortgage. Generally, the older you are and the more equity you have, the more funds are available. Your loan officer at The Tim Hawkes Team can provide a personalized estimate at no cost.
Do I still own my home with a reverse mortgage?
Yes. You retain full ownership and title to your home. The reverse mortgage is simply a lien against the property — the same as a traditional mortgage. You continue to live in and maintain the home as your own.
Are there reverse mortgage lenders in Utah I can trust?
Yes. The Tim Hawkes Team in Clearfield, Utah, is a trusted reverse mortgage lender serving homeowners across the state. With years of experience and a commitment to transparent, no-pressure guidance, they help Utah seniors navigate reverse mortgage options tailored to their retirement goals.
What is the difference between a HECM and a jumbo reverse mortgage?
A HECM (Home Equity Conversion Mortgage) is the most common reverse mortgage, insured by the FHA, with federally set lending limits. A jumbo reverse mortgage (also called a proprietary reverse mortgage) is designed for high-value homes that exceed HECM limits. Jumbo products offer larger loan amounts but are not federally insured.
What happens when I pass away?
Your heirs have several options: they can repay the loan (typically by refinancing) and keep the home, sell the home and retain any equity above the loan balance, or walk away with no personal financial obligation. HECM loans are non-recourse, so heirs will never owe more than the home's appraised value.
Can I use a reverse mortgage to buy a new home?
Yes. The HECM for Purchase program allows you to use a reverse mortgage to buy a new primary residence. You combine a down payment with the reverse mortgage to complete the purchase — all without monthly mortgage payments.
Utah Reverse Mortgage Experts
The Tim Hawkes Team, based in Clearfield, Utah, has helped hundreds of Utah homeowners explore reverse mortgage options that fit their retirement goals. Whether you're considering a HECM, a jumbo reverse mortgage, or a reverse purchase, our experienced loan officers provide transparent guidance every step of the way.
As one of the most trusted reverse mortgage lenders in Utah, we serve homeowners across Davis County, Weber County, Salt Lake County, and communities statewide. We believe every senior deserves to understand their options without pressure or complicated jargon.
Important Disclaimer
A reverse mortgage is not a government benefit; it is a mortgage loan that must be paid back according to the program's requirements. This material is not provided by, nor was it approved by, the Department of Housing & Urban Development (HUD) or by the Federal Housing Administration (FHA). Cornerstone Home Lending is not affiliated with the U.S. government.
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Reverse mortgages can be complex. Speak with a licensed loan officer who can walk you through every detail — no pressure, no obligation.
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